Brent hits $120/bbl ahead of EU meeting on sanctions on Russian

Brent hits $120/bbl ahead of EU meeting on sanctions on Russian

Crude oil surged to a two-month month high in early deals on Monday ahead of a meeting of European Union (EU) members to discuss sanctions on Russia for its invasion of Ukraine.

The deliberations, scheduled for Monday-Tuesday, will also include the proposed embargo on oil imports from Russia.

EU has not been able to reach a consensus on the proposed Russian oil import embargo.

At 1010 am, the July contract of Brent on the Intercontinental Exchange was $120.10 per barrel, up 0.56% from its previous close. The July contract of the West Texas Intermediate on the NYMEX rose 0.88% to $116.08 a barrel.

Rahul Kalantri, vice president for commodities at Mehta Equities, said, “Oil prices rose to two-month highs on Monday as traders waited to see if the European Union would reach an agreement on banning Russian oil ahead of a meeting on a sixth package of sanctions against Moscow for its invasion of Ukraine.”

Crude oil prices also gained due to the summer driving season demand in the US and short supply in international markets, he added. “We expect crude oil prices to remain strong in today’s session,” Kalantri said.

Despite the volatility in international crude oil prices, retail prices of petrol and diesel have remained unchained in India for days now. On Monday, petrol was sold for ₹96.72 per litre, and diesel was priced at ₹89.62 a litre.

Retail fuel prices were last revised on 22 May, with oil marketing companies lowering rates a day after the Centre announced an excise duty cut of ₹8 per litre on petrol and ₹6 a litre on diesel.

Published: 30-05-2022